A provisional broker in Winston-Salem is sorting out a file issue involving breach remedies, termination, and refunds. Which statement best applies under current North Carolina law?
Correct Answer
B) A dispute over earnest money does not authorize the broker to disburse funds unilaterally; the broker must hold or use the clerk-of-court process if appropriate.
A dispute over earnest money does not authorize the broker to disburse funds unilaterally; the broker must hold or use the clerk-of-court process if appropriate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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